Stakeholder theory

DEFINITIONSETHICS a sub-discipline of philosophy concerned with issues of right and wrong in human conduct. It is concerned with good and bad; what is authentic and not authentic; and with the notions of duty, obligation, and moral responsibility.VALUES Individual beliefs which motivate and guide behavior.NORMS Group or societal standards or generally held criteria for acceptable conduct.ETHICS Objective basis upon which judgments are rendered regarding right or wrong behavior.MORALS Actions, behavior, and the principles that guide them.

OFTEN USED AS SYNONYM FOR ETHICS.ETHICAL BASES/THEORIESDEONTOLOGYTELEOLOGYEXISTENSIALISMDEONTOLOGICALRule-based approach, focusing on obligation and duty, similar to the orientation found in the Bible. Since attention is directed to the act itself, this approach is non-consequentialist.

FOCUS: WHAT IS RIGHTDEONTOLOGICALRULE-BASEDOBLIGATION OR DUTYATTENTION DIRECTED TO ACT ITSELFFOCUS: WHAT IS RIGHT.TELEOLOGICALCONSEQUENCESMEASURES AMOUNT OF GOOD OR BAD ARRISING FROM BEHAVIORFOCUS: WHAT IS GOODDISCUSSIONTHE DIFFERENCE BETWEEN DEONTOLOGICAL AND TELEOLOGICAL

DISCUSS EMBRYONIC STEM CELL RESEARCH.

We cannot allow the theology of a few to prevent the progress of the manyEXISTENTIALAttention is directed squarely on the individual. Concepts such as authenticity, which refers to how true the person is to himself or herself, integrity, and genuine-ness are factors that must be considered in judging each individual act at that particular time within the context of the unique circumstances prevailing.FOCUS: WHAT IS AUTHENTICEXISTENTIALISMATTENTION ON INDIVIDUALINTEGRITYTRUE TO SELFCONSISTENTAUTHENTICFOCUS: WHAT IS AUTHENTICNormative TheoriesStock holder TheoryThe Friedman Doctrine, also known as thestockholder theory, is an idea proposed by economic theoristMilton Friedman, which states that a company's only responsibility is to increase its profits.One of the oldest It has fallen into disrepute todayIt is an un warranted hangover from bad old days of capitalismStock holder TheoryThe stockholder theory states that there is only one social responsibility of business: to use its resources to engage in activities designed to increase its prot so long as it operates without deception or fraud.

Stock holder TheoryThis theory was introduced by Milton Friedman, a prominent economist and Nobel Prize winner, who believed that the corporations only responsibility was to its stockholders and that the latter are interested in prot maximization. Therefore, leaders should act as agents for stockholders and focus on their interests.Friedman argued that a company should have no "social responsibility" to the public or society because its only concern is to increase profits for itself and for its shareholders

Stakeholder theoryStakeholder theoryis a theory of organizational management andbusiness ethicsthat addresses morals and values in managing an organization. It was originally detailed byR. Edward Freemanin the bookStrategic Management: A Stakeholder ApproachIdentifies and models the groups which are stakeholders of acorporation, and both describes and recommends methods by which management can give due regard to the interests of those groups. In short, it attempts to address the Principle of Who or What Really Counts.Stakeholder theoryAccording to Stakeholder Theory, the very purpose of the firm is to serve and coordinate the interests of its various stakeholders. These stakeholders can include employees, suppliers, customers and the communities in which the firm operates. It is the moral obligation of the firm's managers to maintain a balance among these interests when directing the activities of the firm.Immanuel Kant analyzed Friedmans stockholder theory and Freemans stakeholder theory, also known as Kantian capitalism and added that when corporations follow the stockholder theory, they fail to recognize and respect the needs of those who contribute to their existence and place themselves in a position to self-destruct through negligenceTherefore, the stakeholder theory is superior to the stockholder theory.Social Contract TheoryInpolitical philosophythesocial contractorpolitical contractis a theory or model, that typically addresses the questions of the origin of society and the legitimacy of the authority of thestateover theindividual.

Social contract arguments typically say that, individuals have consented, either explicitly or tacitly, to surrender some of their freedoms and submit to the authority of the ruler or magistrate (or to the decision of a majority), in exchange for protection of their remainingrights. Social Contract TheoryThe question of the relation between natural and legal rights, therefore, is often an aspect of social contract theory.The Social Contract(Du contrat social ou Principes du droit politique), written byJean-Jacques Rousseau, is a 1762 book about government reforms and how it should change to benefit citizens instead of the government.Social Contract TheoryHugo Grotius(1625),Thomas Hobbes(1651),Samuel Pufendorf(1673),John Locke(1689),Jean-Jacques Rousseau(1762), andImmanuel Kant(1797) are among the most prominent of 17th- and 18th-century theorists of social contract and natural rights. Each solved the problem of political authority in a different way. Grotius posited that individual human beings hadnatural rights; Hobbes asserted that humans consent to abdicate their rights in favor of the absolute authority of government (whether monarchial or parliamentary); Pufendorf disputed Hobbes's equation of a state of nature with war.

Social Contract TheoryLocke believed thatnatural rightswere inalienable, and that the rule of God therefore superseded government authority; and Rousseau believed that democracy (self-rule) was the best way of ensuring the general welfare while maintaining individual freedom under the rule of law.

The Lockean concept of the social contract was invoked in theUnited States Declaration of Independence.

Social contract theories were eclipsed in the 19th century in favor ofutilitarianism,Hegelianism, andMarxism, and were revived in the 20th, notably in the form of athought experimentby John Rawls.

Social Contract TheoryBuilding on the work of Immanuel Kant with its presumption of limits on the state,John Rawls(19212002) proposed a contract approach, inA Theory of Justice(1971), whereby rational people in a hypothetical "original position", setting aside their individual preferences and capacities under a "veil of ignorance", would agree to certain general principles of justice and legal organization. Rerum Novarum Pope LeoXIIINishkama Karma Bhagawad GitaSharia & Halal Islamic